Breaking News

12 October 2006

SOLONS SEEK HALT TO POWER PRICE HIKE

Sen. Miriam Defensor Santiago, chair of the Joint Congressional Power Commission (Powercom), said at yesterday’s public hearing (October 12) that the Bicameral Oversight Committee is prepared to “take drastic measures” to stop the anticipated price increase in electricity this coming December.

“If it becomes necessary, we might order a halt to the commercial operation of the Wholesale Electricity Spot Market (WESM),” Santiago said.

However, Santiago cautioned the public to keep an open mind on whether the recent price increases in the third month of the market’s operation is a result of manipulation, or merely “part of the learning curve of the market.”

“It is possible that the government agencies might have lost a lot of money in the first two months of the market, and that is why they try to increase their prices over on the third month,” she said.

Santiago was referring to the Power Sector Assets and Liabilities Management Corp. (PSALM) under President Nieves Osorio, and to the National Power Corp. (Napocor) under President Cyril de Callar.

“It is highly possible that these two agencies were bidding low during the first two months so that their power plants could be dispatched, thus incurring big losses. So in compensation, they might have tried to increase their price offer on the third month, thus causing the spike in prices,” the senator said.

Santiago said that other government agencies might be to blame for the rising prices.

“The Energy Regulatory Commission (ERC) is also suspect, because it has not yet completed the competition rules which have been pending for three years,” she said.

Santiago added that the Philippine Electricity Market Corp. (PEMC) under President Lasse Holopinen is also suspect, because it immediately leaked to the media its investigation about the alleged price manipulation.

“Consistent with market rules, it is correct for PEMC to conduct the investigation through its surveillance committee. But this should have been kept quiet until the findings were conclusive,” Santiago said.

Santiago said the present market problems are partly caused by the failure of Napocor to privatize its Luzon generation assets, which does not even reach five percent, and by the Napocor’s failure to secure bilateral contracts.

“If evidence before the Powercom establishes that there was intentional price manipulation, then we have to punish those responsible. On the other hand, if the unusual price increase was simply part of the learning curve, then the public announcement of the investigation by the market operator would have jeopardized the privatization program under the Epira Law,” she said.

Santiago told media that the main purpose of the hearing was to hear the side of the accuser, PEMC, and the side of the accused, PSALM and NPC.

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Breaking News

10 October 2006

GMA CERTIFIES URGENT ANTI-BILLBOARD BILL

President Gloria Macapagal Arroyo has certified as urgent Senate Bill No. 2482, “An Act Regulating the Placement of Billboard Signs” also known as “The Anti-Billboard Blight Act,” filed and sponsored by Sen. Miriam Defensor Santiago.

Santiago has already delivered the sponsorship speech for the bill, and has requested majority leader Sen. Francis Pangilinan to give it priority in the floor debates when the Senate resumes session on November 6.
“It was force majeure (an act of God) that toppled all those killer billboards. It was the finger of God pointing at crass materialism. It is time to put a stop to worship of the golden calf of corporate greed, and to return to basic community values,” Santiago said.

The senator praised President Arroyo “for her courageous leadership and responsive sensitivity to public outrage and public demand for safety and aesthetics in our highways.”

The Santiago bill places a strict ban on the following billboards, which are prohibited:

• Those that obstruct or obscure the view of vehicular or pedestrian traffic, in such a manner as to endanger their movement;
  
  
• Those that impair any scenic vista from the highway;
  
  
• Those located in residential zones;
  
  
• Those placed on any public property, telephone or utility poles, or natural features such as trees and rocks;
  
  
• Those erected above the roof of any buildings;
  
  
• Those that obstruct the windows or doorways of adjacent buildings.
  

In addition to the ban on certain billboards, the Santiago bill requires 1,000 feet distance of any billboard from any interchange, right-of-way, street intersection, or any of the following: historical site, school, church, hospital, retirement or nursing home, cemetery, governmental building, public parks, playground, recreation areas, and convention centers.

The Santiago bill limits the size of any billboard to 300 sq. ft., and limits the height to 50 ft., measured from ground level to the highest point of the billboard.

Further, the Santiago bill raises the annual fee for a billboard permit for a new construction to P7,500.

The bill orders the DPWH, in coordination with the MMDA, to use the permit fees to conduct a thorough countrywide inventory of all billboards, including plotting the exact location of each sign, and determining whether or not each sign has a valid permit from the DPWH, MMDA, or any local government agency.

The bill allows the Department of Tourism to construct official business directional signs, but requires DOT to consult with scenic conservation groups, so that the billboards will not have a deleterious impact on the traveling public.

The bill will become effective 15 days after publication.

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Breaking News

8 October 2006

MIRIAM THREATENS JAIL FOR ILLEGAL BILLBOARD ALLIES

Sen. Miriam Defensor Santiago, chair of the Senate subcommittee on billboards, warned policemen and other public officers that under the Penal Code, it is a crime to meddle in the dismantling of illegal billboards or to otherwise protect existing illegal billboards.

Santiago called on PNP Chief Oscar Calderon, MMDA chair Bayani Fernando, and all Metro Manila mayors to warn their subordinates that the Penal Code criminalizes negligence and tolerance in the commission of offenses, such as the erection of billboards constituting public nuisance.

Santiago, a former RTC judge, cited the Penal Code, Article 208, imposing a penalty of imprisonment and suspension “upon any public officers or officer of the law who, in the dereliction of the duties of his office, shall maliciously refrain from instituting prosecution for the punishment of violators of the law, or shall tolerate the commission of offenses.”

Santiago said that the penalty of imprisonment for this crime can be as long as two years and four months; and the penalty of suspension can be as long as six years.

Santiago said she was reacting to news received in her Senate office that DPWH personnel implementing Pres. Arroyo’s recent Administrative Order No. 160 ordering the dismantling or abatement of hazardous billboards, have been reportedly subjected to grave threats by people seeking to protect giant billboards which fell during the recent typhoon.

“I understand that these self-appointed guardians of giant billboards are using the names of Metro Manila mayors, such as Mayor Binay, to claim that the mayor’s office has prohibited the abatement of illegal billboards. I prefer to think that is not true,” Santiago said.

Santiago, a legal luminary, said that any policeman or public officer faces prosecution in the Ombudsman for the crime known as negligence and tolerance, if the offender acts with malicious and deliberate intent to favor the illegal billboard owner and its advertising agency.

“If the policeman or public officer has the duty of prosecuting the billboard offender and instead assists in the maintenance of hazardous billboards, the policeman becomes liable as a principal in the criminal dereliction of duty in the prosecution of offenses. In that case, the public officer is not merely an accessory but a principal,” Santiago said.

Santiago scoffed at arguments of certain advertisers that taking down the giant billboards will deprive some people of income and employment.

“If that is the case, then we should not criminalize theft or robbery, because that also deprives thieves and robbers of employment and income,” she said.

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Breaking News

7 October 2006

MIRIAM ORDERS BICAMERAL PROBE OF BILLION-PESO POWER MARKET

Sen. Miriam Defensor Santiago, chair of the bicameral Joint Congressional Power Commission or Powercom, said the oversight commission will meet next week, October 12, Thursday afternoon, to investigate charges of alleged price manipulation that allegedly caused sudden spikes in Luzon power bills.

Santiago also raised the alarm that the Power Sector Assets Liabilities and Management Corp. (PSALM), and National Power Corp. (NPC) might be losing billions of pesos in the spot market.

“We in government must act very fast because investor confidence in privatization, as well as public trust in the spot market as a device for bringing down power prices, are both hemorrhaging,” the senator said.

Santiago said that “there is cause for concern” over escalating prices in the Philippine wholesale electricity spot market, known as WESM.

“In the first trading month which was June, biddings resulted in an average price of P2.72 per kiloWatt hour (kWh), in the second month it rose again, and now in the third month it is P4.853 per kWh. This is unreasonably high,” Santiago said.
Santiago said the Powercom probe will focus on PSALM which owns the NPC power plants and is the de facto administrator of all NPC power plants.

“PSALM is the dominant market player, because it controls at least 50 percent of Luzon generation capacity,” the senator said.

At a Powercom hearing last August, Santiago had already raised the issue that NPC might be losing a lot of money, since it generates power at P5 per kWh, but sold it in the spot market at only P2.72 per kWh in the first month.

At that meeting two months ago, Santiago had already noted for the record that: “If the average price of generation is used as indicator of the real market price, then we can conclude that NPC’s generation cost is really high.”

Santiago said the fears raised over possible price manipulation in the market are “well-founded.”

“PSALM has market power, and may have been tempted to manipulate spot prices. But – and this is a big but – there are also other market players who might be engaged in so-called ‘gaming,’ because they know that NPC / PSALM might have been losing billions in the spot market,” Santiago said.

The senator said that there are several factors which influence spot prices, notably the cost of producing electricity, which varies from one electric plant to another.

Santiago said the focus of the Powercom probe will be PSALM’s trading decisions in the last month.

“We need to act very fast, because this allegation of price manipulation in the spot market tends to erode investor confidence in the privatization of the power sector,” she said.

The senator said it is “premature” to order the temporary suspension of WESM as called for by certain business leaders.

“Under the Rules of Court, PSALM and DOE are entitled to the presumption that official duty has been regularly performed. It is for the Powercom hearing to determine whether there is evidence to overthrow this presumption.” Santiago said.

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Breaking News

4 October 2006

ANOREXIA STUMPS MIRIAM’S DOCTORS

Doctors express concern the Sen. Miriam Defensor Santiago, who has been diagnosed with anorexia, continue to lose weight.

From 160 lbs. in June, the senator is now down to 135 lbs., and her weight continues to fall, she told senate media.

Concern also been expressed by her colleagues, who often mistakes her illness for anorexia nervosa, which has been proved to be fatal in many cases.

Santiago continues on sick leave from the Senate, but she attends session when her presence is indispensable.

For example, she delivered a sponsorship speech for her billboard ban act, and recently presided at a committee hearing of the Commission on Appointments which saw the confirmation of 31 career diplomats.

Santiago said that her doctors, despite extensive laboratory test, have been unable to locate the source of her loss of appetite.

Her doctors, all internist; Dr. Esperanza Cabral, who specializes in cardiology, Dr. Mejia, who specializes in kidney, and Dr. Nicolas, who specializes in gastrointestinal cases.

Santiago said that Pres. Arroyo has nominated her for the post of Rector of the United Nations University at Tokyo, and she has been shortlisted, but might not be able to attend the required interview in Geneva at the end of the month.

“I specialize in international law, and would have wanted to return through the UN where I served when I was younger. But it seems like I will be too weak to travel and to submit to an extensive interview by the end of the month. I have requested for a waiver, but will have to abide by the consequences. I am very distressed that I might have to give this post a miss,” Santiago said.

The senator added that when the Senate break begins in October 14, she will likely fly for diagnosis to Cedars Sinai in Los Angeles where her sister works as a doctor.

“I feel like I am going, going, and soon be gone. Just call me the disappearing senator,” Santiago quipped.

She said that her anorexia which has caused her to lose 25 lbs. in four months is rendering her physically weak and dizzy.

“I have been so athletic in my life that my problem is not only medical but also attitudinal. I am very frustrated that I cannot even workout in my own home gym,” she said.

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